How is K'taka CM Siddaramaiah addressing GST notice concerns?
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Synopsis
In a crucial meeting, Karnataka's Chief Minister Siddaramaiah engages with trade unions to tackle the GST notice issues affecting small traders. This dialogue aims to ease their concerns and support local businesses. Discover the government's commitment to fostering a healthy trading environment while navigating the complexities of tax regulations.
Key Takeaways
- Siddaramaiah addresses GST concerns for small traders.
- Notices target traders with UPI transactions over Rs 40 lakh.
- No tax collection for exempt goods.
- Old tax arrears will not be pursued upon registration.
- Government focuses on aiding small businesses.
Bengaluru, July 23 (NationPress) The Chief Minister of Karnataka, Siddaramaiah, convened a meeting on Wednesday with representatives from multiple trade unions to address issues surrounding GST notices sent to small traders for failing to pay taxes. The discussions focused on grievances and proposed remedies aimed at supporting small businesses.
During the meeting, Chief Minister Siddaramaiah emphasized that the notices were targeted at traders whose UPI transactions surpassed Rs 40 lakh, primarily to encourage GST registration. He assured attendees that no taxes would be levied on traders selling exempt goods such as milk, vegetables, meat, and fruits, but those who fall under the legal requirements must adhere to regulations.
Additionally, the Chief Minister announced that outstanding tax arrears would not be pursued as long as traders register under GST and commence future tax payments. Registration is not necessary for those engaged in the sale of exempt goods.
CM Siddaramaiah urged trade bodies to cancel the planned agitation on July 25 at Freedom Park, and they have assured him that no protests will take place. He added that all forms of planned protests until July 25 have been retracted.
The government reaffirmed its dedication to assisting small traders while ensuring compliance with legal business practices. Support will include facilitating timely tax payments and improving the existing helpline for easier access.
Karnataka ranks second in India for GST collections and shares 50 percent of the revenue with the central government, as established by the GST Council led by the Union Finance Minister, stated CM Siddaramaiah.
The administration also pledged to operate transparently and assist traders in every feasible legal manner. Trade bodies confirmed they do not endorse any bandhs and agreed to withdraw planned protests following the Chief Minister's assurances. The government reiterated its emphasis on empowering small traders and enhancing purchasing power through various initiatives, according to CM Siddaramaiah.
"The Commercial Tax Department issued 9,000 notices, targeting those with transactions over Rs 40 lakh and requesting a 1 percent tax payment. The imposition of GST is a central government mandate, not a state one. We merely mandated GST registration. During the meeting, traders agreed to register under GST," he stated.
Representatives from trade unions, including the Federation of Karnataka Chambers of Commerce and Industry (FKCCI), expressed concerns about the confusion surrounding the GST notices, which often mix loan amounts and personal transactions. They requested the government to permit direct resolution of issues with the Commercial Tax Department and provide adequate time for traders to settle their dues.
Suggestions included the establishment of a dedicated helpline and awareness programs to clarify GST regulations. They also sought a one-time waiver of previous tax arrears.
However, Karnataka State Karmika Parishat President Ravi Shetty commented: "There will be no cancellation of the protest on July 25. Those who initially called for the protest were excluded from the meeting, which is unfair. All bakeries, condiment stores, and shops will remain shut, and the protest will proceed as planned."
Point of View
The government's engagement with trade unions is crucial for fostering a supportive environment for small traders. CM Siddaramaiah's proactive measures reflect a commitment to balance regulatory compliance with the needs of local businesses, ensuring that all stakeholders can navigate the GST landscape effectively.
NationPress
23/07/2025
Frequently Asked Questions
What are GST notices?
GST notices are communications issued by the tax department to traders who have failed to comply with tax regulations, often regarding unpaid taxes or improper registration.
Who is affected by the GST notices?
Small traders whose UPI transactions exceed Rs 40 lakh are typically the ones receiving GST notices for non-payment of taxes.
Will there be tax collection for exempt goods?
No, traders dealing in exempt goods like milk, vegetables, and fruits are not subject to tax collection under these notices.
Is GST registration mandatory?
Yes, GST registration is mandatory for traders whose transactions exceed the prescribed limit, but those selling exempt goods do not need to register.
What support is the government offering small traders?
The government is providing assistance for timely tax payments, enhancing helplines, and ensuring legal compliance to support small traders.
